Compute the monthly payments on a 3-year lease for a $26,775 car if the annual rate of depreciation is 12% and the lease's annual interest rate is 4.7%.
In: Finance
What is the “impossibility trinity” in foreign exchange markets?
Discuss with reference to the foreign exchange regime in Hong Kong.
In: Finance
What is the value today of a money machine that will pay $1,618.00 every six months for 17.00 years? Assume the first payment is made 4.00 years from today and the interest rate is 7.00%.
Answer format: Currency: Round to: 2 decimal places.
unsure if I'm doing the process right. thanks
In: Finance
Derek will deposit $2,687.00 per year into an account starting today and ending in year 18.00. The account that earns 11.00%. How much will be in the account 18.0 years from today?
Answer format: Currency: Round to: 2 decimal places.
unsure if I'm doing the process correctly. thanks
In: Finance
What is the value today of a money machine that will pay $2,848.00 every six months for 16.00 years? Assume the first payment is made 3.00 years from today and the interest rate is 14.00%.
Answer format: Currency: Round to: 2 decimal places.
Derek will deposit $865.00 per year into an account starting today and ending in year 6.00. The account that earns 9.00%. How much will be in the account 6.0 years from today?
Answer format: Currency: Round to: 2 decimal places
could really use the help. not sure if I'm doing the
process right. thanks
In: Finance
You are managing a portfolio of $1.0 million. Your target
duration is 21 years, and you can choose from two bonds: a
zero-coupon bond with maturity five years, and a perpetuity, each
currently yielding 2%.
a. How much of (i) the zero-coupon bond
and (ii) the perpetuity will you hold in your portfolio?
(Do not round intermediate calculations.
Round your answers to 2 decimal places.)
b. How will these fractions change next
year if target duration is now twenty years?
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a) What are the basic functions of a financial system?
Why is financial system important for improving economic welfare and promoting economic growth?
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7. Systemic risk can be divided into cross sectional systemic and the time series dimension of risk.
Explain each of these, providing examples.
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Question No : 31 I have a portfolio of two stocks. The weights are equal. The one volatility is 30% while the other is 40%. The minimum and maximum possible values of the volatility of my portfolio are:
A. 30% and 40% B. 5% and 35% C. 10% and 40% D. 10% and 70%
In: Finance
Suppose the risk-free rate is 3.61% and an analyst assumes a market risk premium of 7.61%. Firm A just paid a dividend of $1.41 per share. The analyst estimates the β of Firm A to be 1.49 and estimates the dividend growth rate to be 4.35% forever. Firm A has 250.00 million shares outstanding. Firm B just paid a dividend of $1.97 per share. The analyst estimates the β of Firm B to be 0.73 and believes that dividends will grow at 2.16% forever. Firm B has 186.00 million shares outstanding. What is the value of Firm A?
Answer format: Currency: Round to: 2 decimal places.
not sure if I'm doing the process right. thanks
In: Finance
A 2-step binomial tree is used to value an American put option with strike 104, given that the underlying price is currently 100. At each step the underlying price can move up by 20% or down by 20% and the risk-neutral probability of an up move is 0.55. There are no dividends paid on the underlying and the discretely compounded risk free interest rate over each time step is 2%. What is the value of the option in this model? A. 11.82 B. 12.33 C. 12.49 D. 12.78
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Identify the intermediate objectives for macro prudential policy that have been put forward by
the European Systemic Risk Board. Provide a rationale for each of these objectives. Provide
detailed examples of their introduction in Basel 3 and by regulatory authorities.
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Outline the dangers that clients face in dealing with Financial Advisers and Intermediaries. How
does MiFIDII attempt to deal with this?
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The 5th Anti Money Laundering Directive introduces a number of changes on the 4th Directive. Outline the principal changes, providing reasons for their introduction.
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Is use of leverage common among Closed-End or Open-End funds? Why?
In: Finance